social studies

Railroads and Big Business

I. Connecting Lines

  • By the end of the 19th century, many railroad companies were creating networks.

    • Network: system of connected lines.

II. Long Island Railroad Map

  • Features of the map include:

    • MTA (Metropolitan Transportation Authority): Overseeing Long Island Rail Road and various transit hubs.

    • Various types of stations:

    • Accessible station

    • Full-Time Rail Station

    • Part-Time Rail Station

    • Major Transit Hub

  • Shows connections between different ferry services and locations on Long Island such as Shelter Island and Bridgeport, as well as cities from Montauk to the Bronx.

III. Connecting Lines (cont.)

  • This meant that:

    1. Different lines had to be connected.

    2. A standard gauge had to be used.

  • Time Zones: Created due to the necessity of coordinating scheduling across vast distances.

    • Question: Why would railroads create a need for universal time zones?

IV. United States Time Zones

  • Overview of time zones throughout the United States:

    • Pacific

    • Mountain

    • Central

    • Eastern

V. Consolidation

  • Consolidation: means to combine.

    • A. Larger companies bought up smaller companies.

    • B. Most powerful railroad company was owned by Cornelius Vanderbilt.

VI. Consolidation (cont.)

  • Vanderbilt's Influence:

    1. He owned many of the railroad lines in New York, including the route from Buffalo to New York City.

    2. He used ruthless tactics to create a railroad monopoly.

    • Question: How would a businessman use ruthless tactics?

VII. Railroads Help the Economy

  • Railroad companies created thousands of jobs:

    1. Steelworkers: Provided steel for tracks and engines.

    2. Lumberjacks: Supplied wood for railroad ties.

    3. Miners: Extracted coal for engines.

    4. Railroad Company Workers: Ensured operations.

  • Railroads set the stage for the rise of big business.

    • Question: Why would railroads allow for the development of big business?

VIII. Railroad Companies vs. Farmers

  • Railroad Companies:

    1. Biggest customers received secret rebates or discounts.

    2. Formed pools: fixed prices at a high level.

  • Farmers:

    1. Could not afford high railroad rates.

    2. Created the National Grange and Farmers Alliance.

    3. Formed cooperatives: pooled money to buy items at wholesale.

    • Wholesale: purchase items in large quantities for low prices.

Corporations and Big Business

I. Rise of Corporations

  • Large companies could produce goods cheaper than smaller companies.

  • Large companies needed to raise start-up money.

  • Corporation: business owned by investors.

II. Rise of Corporations (cont.)

  • Investors: buy stock, a piece of a business.

    1. Each piece is referred to as a share.

    2. Investors are known as stockholders or shareholders.

  • Dividends: stockholders receive a portion of profits.

    • Question: What are some benefits to being a stockholder of a corporation?

III. Trusts and Monopolies

  • Trust: group of corporations run by a single board of directors.

  • Many trusts become monopolies:

    • Monopoly: controls all or nearly all of a certain industry.

IV. Big Business: Good or Bad

  • Free Enterprise System: businesses owned and operated by private citizens.

  • Economic system referred to as:

    • Capitalism

    • Laissez-faire

    • Free market economy.

  • Citizens control important production questions:

    1. What to produce?

    2. How much to produce?

    3. Where to sell product?

    4. How much to sell product for?

V. Big Business: Good or Bad (cont.)

  • Critics argued that trusts and monopolies were bad for the economy.

    • Question: Why might trusts and monopolies be bad for the economy?

Westward Expansion

I. Reasons to Move West

A. Gold and Silver: Many moved west for riches.

  1. Resulted in the rise of boom towns and ghost towns.

  2. Question: Why do you think mining towns quickly went from boom towns to ghost towns?

II. Reasons to Move West (cont.)

B. Homestead Act: Provided settlers 160 acres of free land if they lived on and developed it for 5 years.
C. Transcontinental Railroad: Connected western cities, stretching from Nebraska to California.

  • Question: What do you think the term "Transcontinental" means?

III. Effects of Westward Expansion on Native Americans

A. Many Native Americans on the Great Plains were forced off their lands.
B. Plains Indians primarily relied on buffalo.

  • Question: In what ways do you think buffalo might have been useful for Indians?

Uses of the Buffalo

  • Buckskin (Hide):

    • Used for moccasin tops, bedding, belts, dresses, and tipi covers.

  • Hair:

    • Used for pillows and rope.

  • Horns:

    • Used for cups, utensils, and toys.

  • Rawhide:

    • Used for clothing, shields, moccasin soles, and buckets.

IV. Effects of Westward Expansion on Native Americans (cont.)

C. As Americans moved westward, buffalo began to disappear.

  1. Americans killed buffalo to harm Native Americans.

D. U.S. Army and Native Americans: Fought battles over control of the Great Plains till the end of the 19th century.

  1. Battle of Little Big Horn: General George Custer and his troops defeated by Indian Chiefs Sitting Bull and Crazy Horse.

  2. Question: How was this battle different from most others between these two groups?

  3. Chief Joseph and Geronimo: Led strong resistance before eventually surrendering.

  4. Battle of Wounded Knee: 300 Native American men, women, and children killed - the last major conflict between the U.S. Army and Native Americans.

V. Dawes Act

  • Dawes Act: Divided Native American lands.

    1. Gave each Indian a small piece of land, opposing their beliefs.

    • Question: Why might the government have passed the Dawes Act?

    1. Many whites ended up purchasing the lands for very low prices.

    2. Indians forced to live on reservations to maintain their independence.